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What is the future value of $168 invested at 8% APR for 5 years?You are considering buying a bond which will pay annual amounts as
What is the future value of $168 invested at 8% APR for 5 years?You are considering buying a bond which will pay annual amounts as shown at the end of this year, and at the end of every year until five year from now. At the end of the fifth year, the bond will also pay you an extra $1,000. The following table shows your expected cash inflows and timing. The percent return you demand from your investments is at the top of the table, labeled "Required Return." 10% Required Return Years to wait 0 1 2 3 4 5 Annual payment expected 90 90 90 90 90 Additional lump sum expected 1,000 Total Cash Flow 90 90 90 90 1,090 What is this bond worth in today's money
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